Ghana and Singapore Semi-Fungible Token Trade Trial

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As a researcher who has followed the developments in digital currencies and fintech closely, I am thrilled to witness this groundbreaking collaboration between the Bank of Ghana and the Monetary Authority of Singapore on the Digital Economy Semi-Fungible Token (DESFT) project. This initiative represents an essential step towards facilitating easier trading for small and medium businesses in Ghana and Singapore.

The collaboration between the Bank of Ghana and the Monetary Authority of Singapore has resulted in a project named Digital Economy Semi-Fungible Token (DESFT), aimed at facilitating seamless trading for small and medium enterprises (SMEs) in Ghana and Singapore.

During the course of the project collaboration, both parties conducted real-time exchanges employing their digital tokens. These tokens adhered to UN-established guidelines and incorporated authenticated commercial papers such as licenses, certificates, and trade documents.

Ghana achieves a pioneering feat with the completion of its first cross-border transaction using eCedi and a Singapore stablecoin, marking a significant milestone under Project DESFT. This achievement aims to enhance financial inclusion for Small and Medium Enterprises (SMEs) in international trade. #Ghana #eCedi #Fintech #DESFT

— Fintech Association of Kenya (@FINTAK_Official) May 17, 2024

As a researcher, I’ve come across an intriguing method of processing payments. Instead of using traditional fiat currencies, I’ve observed that some entities opted for a Singapore dollar stablecoin and Ghana’s emerging digital currency named e-cedi. These transactions took place on a decentralized network, specifically through the Purpose Bound Money (PBM) protocol.

Kwame Oppong, a director at the Bank of Ghana, shared that following a year’s worth of effort, they successfully established a method for securely exchanging authenticated business data through these semi-fungible tokens. They conducted practical tests to validate this approach and achieved their intended results.

Oppong went on to discuss his intentions of applying this innovation to supply chain financing and transactions involving various digital currencies in the future. These tokens are based on blockchain technology, adhering to the ERC-3525 standard on Ethereum. The aim is to merge traditional record keeping with the unique digital ownership characteristics of NFTs using these semi-fungible tokens.

As a researcher studying digital currencies, I can tell you that Ghana’s e-cedi is currently undergoing pilot tests and an official public launch date has not been disclosed yet.

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2024-05-18 04:57